The NSW Government announced in its budget on 12 June 2012 introduction of the New Home Grant Scheme which applies to all buyers of new homes in NSW and also of important changes to the current First Home Owner Grant scheme.
From 1 July 2012, a new grant of $5,000.00 will be provided to buyers of new homes, whether off the plan of newly built, with a value up to $650,000.00 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.00. The grant is available to all non-first home buyers and is available to investors as well as owner occupiers.
From 1 October 2012, the $7,000.00 First Home Owner Grant will be replaced by the $15,000.00 First Home Owner Grant (New Homes) Scheme. The new scheme will only apply to first home owners who purchase or build a new home valued up to $650,000.00. From 1 January 2014, the grant will then reduce to $10,000.00.
Importantly, the current $7,000.00 first home owner grant for existing or established properties ends on 30 September 2012 in a move aimed at boosting the NSW housing construction sector. It is estimated that 80% of property purchasers in NSW are of existing or established properties and this is therefore a significant change.
From 1 July 2012, the stamp duty exemption threshold for first home buyers of new residences is also set to increase from $500,000.00 to $550,000.00 and for vacant land from $300,000.00 to $350,000.00 with concessions for new homes valued between $550,000.00 and $650,000.00 and for vacant land valued between $350,000.00 and $450,000.00.
Michael McGrath is an Associate Director at Mullane & Lindsay, and practises extensively in Commercial Law, Property Law and Wills & Estate Planning. If you require any assistance in this area please contact Michael McGrath to arrange a consultation or contact our Newcastle office.